MOBILE SALES TO RESIDENTS
2010/2016/2020 (global, USD billion, constant terms)
1200
800
400
0
2010
2016
Mobile
Increased personalisation is expected
also in activities. They see growing
interest from major travel brands
such as Airbnb, Google, TripAdvisor
or Expedia to create and promote
customized travel itineraries. The
challenge is to push the personalized
ideas at the right moment, based
on previous preferences, current
location, time, weather or other
factors.
Future Strategies of
Success in the Travel
Industry
Consumers, particularly millennials,
indicate that they want to be able to
interact with companies online and
through apps, and are more willing
to buy products and services online.
Technology is millennials’ playground
but older generations embraced the
latest developments as well. With
foreseen stagnation in offline travel
sales by 2020, the expected 31%
growth of online sales will drive the
total sales progress in the travel
industry. This will lead to a switch in
2020
Online excl. mobile sales
distribution channels, online travel
sales becoming the main contributor,
with 51% by 2020.
Almost one billion more people,
mainly from emerging economies,
are foreseen to have internet
access by 2020. Already with 52%
penetration in 2016, the spectacular
mobile internet development is
expected to continue, up to a 78%
penetration rate by 2020, together
with growing possession of mobile
devices. What traditional internet
managed to achieve in 20 years
or more, mobile is doing in less
than 10. For mobile travel sales,
this translates into a doubling in
size by 2020 (compared to 2016),
representing a 39% value share
in total digital travel purchases. It
becomes clear that mobile is the
mandatory tool to reach today’s and
tomorrow’s consumers.
Double-digit progress is expected in
outbound and domestic trips, among
other positive travel developments
by 2020. Asia in general, but China,
in particular, is foreseen to be the
driving source market for outbound
trips over the coming years.
However, as one of the region‘s
specifics, it is important to be aware
that many of the large Western
social media, messaging, online travel
agencies and private rental platforms
are not available here, having popular
local substitutes.
About the author
Cosmin Dan is a research analyst
covering Travel and Tourism within
Services and Payments at Euromonitor
International. He holds a Bachelor’s
degree in Management and Masters
in Market ing from the Academy of
Economic Studies in Bucharest, Romania.
With a detailed understanding of the
business environment, Cosmin’s focus
is analyzing the markets development
in different countries, identifying and
confirming key trends.
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